Pompano Beach, Florida – Johanna Michely Garcia, the former Chief Executive Officer of MJ Capital Funding, LLC, has been indicted for allegedly masterminding a Ponzi scheme that defrauded investors of approximately $190.7 million.
A federal grand jury in South Florida has leveled charges against Garcia, 40, of Broward County. The indictment encompasses allegations of conspiracy to commit wire and mail fraud, multiple instances of wire and mail fraud, as well as money laundering, as detailed by the Department of Justice.
MJ Capital Funding, LLC, situated in Pompano Beach, specialized in providing merchant cash advances (MCAs) to small and mid-scale enterprises. It is alleged that from October 2020 to August 12, 2021, Garcia, in collaboration with Pavel Ramon Ruiz Hernandez and other associates, deceitfully procured funds from investors, purportedly for financing MCAs. The scheme also involved recruiters who attracted new investors, receiving a 10% commission in return.
Following the indictment, Garcia made an appearance in the U.S. Magistrate Court. A subsequent hearing has been slated for August 28. Upon conviction, Garcia might be liable for a maximum of 20 years of incarceration for each charge related to conspiracy, money laundering, and mail fraud. Moreover, each money laundering offense might attract a penalty of up to 10 years. Notably, Ruiz Hernandez, an accomplice in this case, entered a guilty plea in April 2023, with his sentencing due on September 7.